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The Agent, Sydney, to the Eastern Extension Company, London. 13th October, 1886. Vogel promises reply before end of this week.

The Agent, New Zealand, to the Eastern Extension Company, London. 14th October, 1886. At the annual meeting of the Dunedin Chamber of Commerce the following resolution was adopted: " That it is not desirable to lay a new cable as proposed, but the Government should co-operate with the other Australian Governments to secure reduction of rates."

The Agent, New Zealand, to the Eastern Extension Company, London. 14th October, 1886. Wellington papers state that a Cabinet Council was held on the 7th when cable question was under consideration, but that no decision was arrived at.

The Agent, Melbourne to the Easteen Extension Company, 14th October, 1886. Melbourne Postmaster says Sydney Postmaster has intimated Vogel that he would recommend his colleagues to continue subsidy another five years. Company reduced rates as proposed January last to five shillings ten words, and urged him also agree to this. Vogel promised reply end this week. Sydney Postmaster asks would Victoria contribute portion subsidy if New South Wales reduces land-line charge on Victorian messages to New Zealand to one shilling ten words; latter will receive consideration Victorian Government.

The Agent, Sydney, to the Easteen Extension Company, London. 17th October, 1886. Vogel replied Postmaster, Sydney : " Government agree with your telegrams 24th and 29th Septembeß, but regret apparent change of view shown by telegram 13th. They consider it unfair to raise rate. I attach copy of a telegram I am sending company. Hope you will support same Views which are those of your telegram, 24th September."

The Agent, Sydney, to the Easteen Extension Company, London. 18th October, 1886. Sydney Government now waiting reply from Victoria to proposal that New South Wales and Victoria jointly pay subsidy to reduce transit rate from Melbourne to Sydney from two to one shilling, and increase rate for New Zealand messages over Darwin cable. Sargood, of Melbourne Chamber of Commerce, at Wellington, negotiating with Vogel.

The Agent, Melbourne, to the Easteen Extension Company, London. 18th October, 1886. Have given Postmaster copy of Vogel's message. He expresses his sympathy with company, and asks what chairman proposes doing now, as he wishes to communicate President of Melbourne" Chamber of Commerce, now in New Zealand, how to act on behalf of Victoria.

The Agent, Sydney, to the Easteen Extension Company, London. 22nd October, 1886. Vogel telegraphs Sydney : " Government are determined not to give subsidy—retrench whereever practicable. Eeduction offered for subsidy very trifling for ordinary messages, few people enjoy them, and Press will guarantee equivalent revenue if reduction made. Eenewal subsidy will tend keep monopoly and prevent new line. Whole charges between colonies and Europe should be greatly reduced. Bequest arrange conference Wellington about February."

The Agent, Sydney, to the Easteen Extension Company, London. 23rd October, 1886. Victobia declines to contribute towards New Zealand cable subsidy unless upon the basis of federal subsidation of Australian cables. Sargood at meeting of Dunedin Chambers of Commerce said, " New Zealand must subsidize or submit to increased tariff." In Brisbane Parliament Palmer moved, " In view of improbability of substantial reductions of rates by existing routes, Government should negotiate with the other colonies or subsidize new cable." He said that cable companies were huge monopolies. Premier agreed. He had received various proposals, but nothing definite had been submitted. Pacific cable proposal is not forward enough for Government to take action. He deprecated cable from a Queensland port to Asia, and considered cable communication more important than mail.

The Chairman, Eastern Extension Company, to the Postmasters-General, Victoria and New South Wales. 27th October, 1886. I send you a copy of my reply to Sir Julius Vogel's telegram refusing the company's offer of arbitration, and regret that we have no alternative but to raise the tariff from the Ist November. We hope public opinion will be so roused as to have this question settled upon a mutually satisfactory basis before long. May we ask for your good offices in this direction ?